Estate and Legacy PlanningGiving with purpose
Bringing a strategic lens to your philanthropy
Philanthropy takes many forms in modern life, from adding a dollar at the supermarket checkout to making a major, planned gift. Whether by making donations to yearly outreach campaigns or simply saying “yes” to seemingly endless petitions to buy cookies and sponsor races, you may find that you’ve become quite a philanthropist without realizing it. Yet no matter what form your giving takes, you may be missing out on the ability for greater impact, as well as financial advantages, if you lack a thoughtful philanthropic strategy.
For affluent families, wealth creates an incredible opportunity to give back to their communities and the world at large. To seize that opportunity, the most effective philanthropists have a personalized strategy for their charitable giving. At Steel Tower Investments, we bring the same care and thought to clients’ philanthropic portfolio as we do to their investments. With a thoughtful plan, we believe donors can both maximize the impact of their charitable giving and pass on a legacy of lasting financial values to their children.
“Donors often have a deeply personal connection to the institutions they support, whether in the arts, education, human services, or another sector. With thoughtful strategy, donors can structure multi-year and planned gifts that maximize impact.”
Carolyn Hess Abraham, Steel Tower philanthropic advisor
A changing philanthropic landscape
There was a time when most donors gave with relatively few expectations about how their funds would be used. Today, a growing number of donors see their gifts as a form of active engagement. Some use their contributions as leverage, for example asking for matching gifts to build momentum around causes they care about. In this way, for many of our clients, giving has become a form of purposeful activism. High net worth donors have also come to expect detailed reporting among the stipulations that accompany substantial gifts.
At the same time, nonprofit leaders advocate to retain broad freedom to make judgment calls without seeking donor approval at every turn. In today’s giving landscape, we help our clients to choose organizations whose expectations align with theirs and whose leadership they trust. We work to facilitate open lines of communication between the donor and recipient organizations through ongoing conversations and a collaborative philanthropy planning process.
Crafting a strategy that maximizes impact
Many of our clients have been sustaining donors for many years, but they may lack a clear view of their impact as well as a vision for their future giving. Considering the impact of an intentional strategy can be a revelation.
As our founding partner Elizabeth Urish says: “My clients understand the importance of strategy in their professional lives—so they quickly recognize its value in the sphere of charitable giving.”
To craft a meaningful plan, we discuss the following considerations with clients.
What is this charitable giving meant to express?
Is the donor supporting an organization whose mission they feel passionate about? Are they expressing gratitude to an institution, such as an alma mater, that meaningfully shaped their life? Perhaps they are honoring a parent, mentor, or friend whose values they want to carry forward. The “why” behind a gift shapes everything from the organizations a philanthropist chooses to the way they communicate their intentions and the legacy they leave.
As Carolyn Hess Abraham, a Steel Tower philanthropic advisor, says: “Donors often have a deeply personal connection to the institutions they support, whether in the arts, education, human services, or another sector. With thoughtful strategy, donors can structure multi-year and planned gifts that maximize impact.”
With our clients, we have seen charitable giving become an important way to pass closely-held principles on to a younger generation. We frequently help multigenerational families create a vision and a values statement for their philanthropy as a foundational part of their giving strategy.
What size gift will match your goals?
Every size gift has its place. Of course, even large organizations depend on smaller donations in greater volumes to meet their goal, especially during this period when government funding has become scarcer. To maximize reach, we help clients find opportunities where their gifts are the right size to be impactful and meaningfully enable explicit initiatives and goals within an organization. Impact may come in the form of a smaller gift with a specific purpose inside a larger organization. At the same time, it doesn’t take a very sizable gift to be transformative inside a smaller organization that’s ready to put the funds to good use.
What relationship do you envision with the recipient organization?
For some clients, giving itself is the most fulfilling act. Whether they choose anonymity or appreciate public recognition or the opportunity to honor a loved one, their engagement with the recipient organization may be limited. For others, however, charitable giving enables them to join more actively in a community, whether by attending events, joining advisory boards, mentoring staff, or lending their professional expertise. This type of engagement may be particularly welcome for retirees seeking a renewed sense of purpose and connection.
Building your philanthropic strategy
Charitable giving, done well, is one of the most powerful tools available to high net worth individuals, not just for the good it does in the world, but for the sense of purpose it can bring to the donor and the lasting legacy it can leave. In practical terms, it can also impact a philanthropist’s broader wealth portfolio, including tax and estate planning.
At Steel Tower, we work with clients to ensure that their generosity is as well-structured as the rest of their financial life. If you’re ready to give with greater intention and impact, please reach out to us.
IMPORTANT DISCLOSURES
The information included in this document is for general, informational purposes only. It does not contain any investment advice and does not address any individual facts and circumstances. As such, it cannot be relied on as providing any investment advice. If you would like investment advice regarding your specific facts and circumstances, please contact a qualified financial advisor.
Any investment involves some degree of risk, and different types of investments involve varying degrees of risk, including loss of principal. It should not be assumed that future performance of any specific investment, strategy or allocation (including those recommended by Steel Tower Investments) will be profitable or equal the corresponding indicated or intended results or performance level(s). Past performance of any security, indices, strategy or allocation may not be indicative of future results.
The historical and current information as to rules, laws, guidelines or benefits contained in this document is a summary of information obtained from or prepared by other sources. It has not been independently verified, but was obtained from sources believed to be reliable. Steel Tower Investments does not guarantee the accuracy of this information and does not assume liability for any errors in information obtained from or prepared by these other sources.
Steel Tower Investments is not a legal or accounting firm, and does not render legal, accounting or tax advice. You should contact an attorney or CPA if you wish to receive legal, accounting or tax advice.
Investment advisory services are offered through UP Strategic Wealth Investment Advisors, LLC, doing business as Steel Tower Investments. NOT FDIC INSURED – NOT BANK GUARANTEED – MAY LOSE VALUE, INCLUDING LOSS OF PRINCIPAL – NOT INSURED BY ANY STATE OR FEDERAL AGENCY
